Spring 2006 BU 347: Prouction ! "perations #anage$ent
%nstructor: Bill &oach Stuent 'a$e (((((((((((((((((((((((((((( )*a$ 2+ ,ill %ns ,ill in the appropriate ter$s for the efinitions given belo-. 1. (((((((((((((((((((((((((((((( any instance when a process fails to satisfy its customer. 2. (((((((((((((((((((((((((((((( a philosophy that stresses three principles for achieving high levels of process performance and quality: customer satisfaction, employee involvement, and continuous improvement in performance. 3. ((((((((((((((((((((((((((((((( the purely random, unidentifiable sources of variation that are unavoidable with the current process. 4. (((((((((((((((((((((((((((((((( a chart used to monitor process variability. 5. the degree to which equipment, space, or labor is currently being used. !. ((((((((((((((((((((((((((((((((( the amount of reserve capacity that a process has to handle sudden increases in demand or temporary losses of production capacity" it measures the amount by which the average utili#ation $in terms of total capacity% falls below 1&& percent '. ((((((((((((((((((((((((((((((((( the time required to change a machine from ma(ing one service or product to ma(ing another ). ((((((((((((((((((((((((((((((((( the difference between the flows of funds into and out of an organi#ation over a period of time, including revenues, costs, and changes in assets and liabilities *. (((((((((((((((((((((((((((((((( a statement of all wor( that has to be completed 1&. (((((((((((((((((((((((((((((((( a networ( planning method developed in the 1*5&s as a means of scheduling maintenance shutdowns at chemical+processing plants 11. (((((((((((((((((((((((((((((((( the sequence of activities between a pro,ect-s start and finish that ta(es the longest time to complete 12. (((((((((((((((((((((((((((((((( the ma.imum length of time that an activity can be delayed without delaying the entire pro,ect 13. (((((((((((((((((((((((((((((((( the design of a firm-s customer relationship, order fulfillment, and supplier relationship process and the synchroni#ation of these processes with the (ey processes of its suppliers and customers in order to match the flow of services, "materials, and information 14. (((((((((((((((((((((((((((((((( the items in manufacturing plants, warehouses, and retail outlets that are sold to the firm-s customers 15. (((((((((((((((((((((((((((((((( the phenomenon in supply chains whereby ordering patterns e.perience increasing variance as you proceed upstream in the chain 1!. (((((((((((((((((((((((((((((((( the awarding of a contract for a service or item to only one supplier 1'. (((((((((((((((((((((((((((((((( the description of businesses- deployment of facilities and operations around the world 1). (((((((((((((((((((((((((((((((( solution guidelines, or rules of thumb, that find feasible+but not necessarily the best+ solutions to problems 1*. (((((((((((((((((((((((((((((((( a situation whereby several competing firms clustered in one location attract more customers than the total number who would shop at the same stores at scattered locations 2&. (((((((((((((((((((((((((((((((( a factor that considers the availability of good schools, recreational facilities, cultural events, and an attractive lifestyle Wor Ban/ +ctivity0 +ssignable 1auses of 2ariation0 +ttributes0 Bull-hip )ffect0 1apacity 1ushion0 1ash ,lo-0 1o$$on 1auses of 2ariation0 1ritical #ass0 1ritical Path0 1ritical Path #etho 31P#40 5efect0 5istribution0 )arliest ,inish 6i$e 3),40 ,inishe 7oos 3,740 7lobali8ation0 9euristics0 P:1hart0 Prevention 1osts0 ;uality 1ircles0 ;uality of <ife0 &: 1hart0 Setup 6i$e0 Slac/0 Sole Sourcing0 Statistical Process 1ontrol 3SP140 Supply 1hain #anage$ent0 6otal ;uality #anage$ent 36;#40 Utili8ation0 Wor/ Brea/o-n Structure Process +nalysis Inputs Solver - Process Charts /nter data in yellow shaded areas. Process: 0r 5+11 1a(ing 2ne 3ce 4ream 4one 5ummary Subject: 5erver at the 4ounter Beginning: 6al( to the cone storage area 7ctivity 8umber of 5teps 9ime $min % :istance $ft% Ending: ;ive cone to server or customer 2peration ! 1.'& 9ransport ! &.)& 31 3nspect 1 &.25 :elay 1 &.5& 5tore ++ ++ 5tep 8o. 9ime $min% :istance $ft% 20 9<78 3850 :/=7> 592</ 5tep :escription 1 &.2& 5.& . 6al( to cone storage area 2 &.&5 . <emove empty cone 3 &.1& 5.& . 6al( to counter 4 &.&5 . 0lace cone in holder 5 &.2& ).& . 6al( to the sin( area ! &.5& . 7s( dishwasher to wash scoop ' &.15 ).& . 6al( to counter with clean scoop ) &.&5 . 0ic( up empty cone * &.1& 2.5 . 6al( to flavor ordered 1& &.'5 . 5coop ice cream from container 11 &.'5 . 0lace ice cream in cone 12 &.25 . 4hec( for stability 13 &.&5 2.5 . 6al( to order placement area 14 &.&5 . ;ive server or customer the cone 15 1! a4 Sho- ho- the total istance travele is calculate. b4 9o- $uch ti$e -oul be eli$inate by placing the ice crea$ scoop in a buc/et of -ater= 9int: 6he attenant -oul not have to perfor$ any of the steps involve in -ashing the scoop. c4 Which steps involve a elay= 4 9o- -oul this chart change if the ice crea$ shop -ent to softserve0 that is0 no scoops an fe-er variaties of ice crea$= e4 Statistical Process 1ontrol 6he Watson )lectric 1o$pany prouces incanescent light bulbs. 6he follo-ing ata on the nu$ber of lu$ens for 40:-att light bulbs -ere collecte -hen the process -as in control. Statistical Process 1ontrol "bservation Sa$ple > 2 3 4 *bar range > 604 6>2 ?@@ 600 60> 24 2 ?A7 60> 607 603 602 >0 3 ?@> ?70 ?@? ?A2 ?@2 22 4 620 60? ?A? ?@@ 602 32 ? ?A0 6>4 60@ 604 604 24 *barbar ?A@.2 rbar 22.4 Sa$ple Si8e +2 53 54 2 >.@@0 0 3.267 4 0.72A 0 2.2@2 ? 0.?77 0 2.>>? >0 0.30@ 0.223 >.777 U1<*bar 6>4.? <1<*bar ?@>.A U1<r ?>.> <1<r 0 )*plain the circle calculations. Bour e*planation shoul inclue both for$ulas an nu$bers. 1onstruct the r:chart an e*plain -hether the process is in control. 6heory of 1onstraints 6uff &ier0 %nc. $anufactures touring bi/es an $ountain bi/es in a variety of fra$e si8es0 colors0 an co$ponent co$binations. %entical bicycles are prouce in lots of >00. 6he proCecte e$an0 lot si8e0 an ti$e stanars are sho-n in the follo-ing table. Item Touring Mountain 5e$an ,orecast ?0000 units ! year >00000 units ! year <ot Si8e >00 units >00 units Stanar Processing 6i$e D hour ! unit E hour ! unit Stanar Setup 6i$e 2 hour ! lot 3 hour ! lot 6he shop currently -or/s eight hours a ay0 five ays a -ee/0 ?0 -ee/s per year. %t has ? -or/stations0 each proucing one bicycle in the ti$e sho-n in the table. 6he shop $aintains a >? percent capacity cushion. )*plain ho- the circle figures in the capacity analysis belo- -ere calculate. Solver - Capacity Requirements )nter ata in yello- shae areas. Shifts!5ay > 1o$ponents 2 9ours!Shift @ 5ays!Wee/ ? #ore 1o$ponents Wee/s!Bear ?0 ,e-er 1o$ponents 1ushion 3as F4 >?F 1urrent capacity ? Processing Setup <ot Si8e 5e$an ,orecasts 1o$ponents 3hr!unit4 3hr!lot4 3units!lot4 Pessi$istic )*pecte "pti$istic 6ouring Bi/es 0.2? 2.0 >00 ?0000 #ountain Bi/es 0.?0 3.0 >00 >00000 Prouctive hours fro$ one capacity unit for a year >0700 Pessimistic Expected Optimistic Process Setup Process Setup Process Setup 6ouring Bi/es 0 0.0 >02?0 >00.0 0 0.0 #ountain Bi/es 0 0.0 ?0000 300.0 0 0.0 0 0.0 602?0 400.0 0 0.0 6otal hours reGuire 0.0 606?0.0 0.0 6otal capacity reGuire$ents 3#4 0.00 3.A> 0.00 &oune 0 4 0
Supply 1hain #anage$ent + fir$Hs cost of goos sol last year -as I304>000000 an the fir$ operates ?2 -ee/s per year. %t carries seven ite$s in inventory0 three ra- $aterials0 t-o -or/:in:process ite$s an t-o finishe goo ite$s. 6he follo-ing table last yearHs average inventory level for each ite$0 along -ith its value. 4ost of ;oods 5old ?3,41&,&&& 6ee(s of 2peration 52 3tem 8umber 7verage =evel @nit Aalue 9otal Aalue <aw 1aterials 1 15,&&& ?3.&& ?45,&&& 2 2,5&& ?5.&& ?12,5&& 3 3,&&& ?1.&& ?3,&&& ?& ?& 6or( in 0rogress 4 5,&&& ?14.&& ?'&,&&& 5 4,&&& ?1).&& ?'2,&&& ?& ?& ?& Binished ;oods ! 2,&&& ?4).&& ?*!,&&& ' 1,&&& ?!2.&& ?!2,&&& ?& ?& ?& 9otal ?3!&,5&& 7verage 6ee(ly 5ales at 4ost ?!5,5'' 6ee(s of 5upply 5.5 3nventory 9urnover *.5 Sho- ho- the circle figures are calculate an e*plain their $eaning if appropriate. <ocation 5ecisions ,all <ine0 %nc. is a 7reat ,alls0 #ontana $anufacturer of a variety of o-nhill s/is. ,all <ine is consiering four locations for a ne- plant: +spen0 1oloraoJ #eicine <oge KansasJ Bro/en Bo-0 'ebras/aJ an Woune Knee0 South 5a/ota. +nnual fi*e costs an variable cost per pair of s/is are sho- in the follo-ing table. )*plain ho- the circle figures are calculate an their $eaning if appropriate. 7nnual Aariable =ocation Bi.ed 4osts 4ost C 0air 7spen ? ),&&&,&&& 25& 1edicine =odge ? 2,4&&,&&& 13& Dro(en Dow ? 3,4&&,&&& *& 6ounded Enee ? 4,5&&,&&& !5 4osts 1edicine Dro(en 6ounded Aolume 7spen =odge Dow Enee + ),&&&,&&& 2,4&&,&&& 3,4&&,&&& 4,5&&,&&&